“This way, motorists save money for whenever they don’t, or can’t, drive.”
The RAC said customers can track their overall mileage and charges 24 hours a day, seven days a week via their online account.
The RAC confirms drivers will have no tricky devices to plug-in and no other details or information will be tracked except for mileage.
The agreements will also be underwritten by the Highway Insurance Company, a part of LV=.
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Mr Godfrey added: “With monthly, no-ties subscriptions now the norm for so many services we felt the time was right to bring this approach to car insurance – so our new product offers both flexibility and transparency.